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Writer's pictureLaura Mackenzie

Unlocking Financial Freedom: The Power of Passive Income for Small Creative Business Owners

How do you make passive income as a small creative business owner? Read on for my top tips on building a side hustle to increase your earnings while working less!


In today's competitive world, finding ways to generate additional income has become more important than ever. For small creative business owners in particular, harnessing the power of passive income can be an absolute game-changer.



Passive income is a way to generate some extra dollar on the side of your regular work that takes minimal time, labour, and investment. It allows small business owners to support themselves by using the assets and skills they already possess to their full potential, while not being tied to a desk or working all the hours under the sun.


It's a common misconception that if you want to make money you need to work more, meaning you stretch yourself thin and likely end up in burnout. This is wrong! You can work less and earn more if you just put the initial effort in first to create a powerful passive income stream.


I'm here to share a few ideas with you on various ways creative entrepreneurs and small business owners can generate passive income and increase their earnings.


By harnessing the power of passive income, creative entrepreneurs can unlock financial freedom, gain more free time, make money while not ‘working’ and maximize earnings!


Passive income ideas for your creative business


SELL DIGITAL PRODUCTS

One of the most popular ways for creative entrepreneurs to generate passive income is by selling digital products. Whether you're a graphic designer, photographer, writer, or musician, creating digital products like e-books, online courses, templates, or stock images can be an easy-to-do lucrative venture. By leveraging your existing skills and knowledge, you can create the products once and sell them repeatedly to a global audience. The beauty of digital products is that they require minimal upkeep once created, allowing you to earn money while you sleep.


BECOME A BLOGGER

Blogging has evolved into a sustainable source of passive income for many creative business owners. By sharing your expertise and insights through well-written blog posts, you can attract a wide audience and monetize your blog through various channels such as display advertising, sponsored content, or affiliate marketing. To be successful, narrow down on a niche that aligns with your creative business and consistently produce high-quality content that engages and educates your readers.


RUN AN AFFILIATE MARKETING BUSINESS

Affiliate marketing provides an opportunity for creative entrepreneurs to earn passive income by promoting products or services from other companies. As an affiliate marketer, you earn a commission for every sale or lead generated through your unique affiliate links. This can be done through blog post recommendations, social media promotions, or even by creating dedicated content or videos reviewing products and including affiliate links. Select affiliate programs that align with your creative business and have products or services that you genuinely believe in, and will be attractive to your customer.


START A DROPSHIPPING STORE

Dropshipping has gained momentum in recent years as an attractive way for small business owners to generate passive income. With dropshipping, you can set up an online store without the need for inventory or shipping logistics. You collaborate with suppliers who handle the product storage and delivery while you focus on marketing and customer acquisition. By curating a unique selection of products that resonate with your target audience, you can earn a profit on each sale without the hassle of maintaining inventory.


TEACH ONLINE COURSES

If you possess specialized knowledge or skills within your creative field, creating and selling online courses can be a rewarding passive income stream. Online learning platforms provide a convenient way for you to package your expertise into comprehensive courses that learners can purchase and access at their own pace. By leveraging your experience and teaching abilities, you can create valuable educational content that resonates with your audience and generates a steady stream of income.


I offer a CRM set up for coaches using Kajabi to share online courses and educational content! You can find out more about that here.


BUY AND SELL WEBSITES

Another unique way to generate passive income for creative business owners is by buying and selling websites. This strategy involves identifying undervalued websites, improving their design or content, and subsequently selling them at a profit. This can be a challenging but rewarding venture for those with a keen eye for identifying website potential and optimizing its value. As the digital landscape continues to grow, the demand for established websites with solid traffic and revenue streams is steadily increasing.


CREATE AN APP

If you have a flair for technology and innovative thinking, creating a mobile app can be an excellent way to generate passive income. The app market continues to expand rapidly, presenting ample opportunities for creative entrepreneurs to develop unique and useful applications. By conducting market research and identifying a gap or a problem that your app can solve, you can develop a revenue-generating app that can provide a passive income stream through in-app purchases, subscriptions, or advertisements.


INVEST IN OTHER BUSINESSES

For creative business owners looking to diversify their passive income streams, investing in other businesses can be a lucrative option. By becoming an angel investor or a silent partner in a promising startup or established business, you can earn dividends or a share of the profits without active involvement in the day-to-day operations. This requires thorough due diligence and careful evaluation of potential opportunities but can yield significant returns in the long run.



Generating passive income through creative ventures has become increasingly achievable for small business owners. Whether it's selling digital products, blogging, affiliate marketing, dropshipping, teaching online courses, investing in real estate or businesses, or creating apps, the options are vast and varied. By harnessing the power of passive income, creative entrepreneurs can unlock financial freedom and maximize their earnings in 2024 and beyond. So, embrace your creativity, explore these opportunities, and let passive income become a catalyst for your financial success.


If you're really keen on creating a passive income stream for your small creative business, but just aren't really sure what that would look like or what would work best for you, let's discuss it in a power hour!


My one-off power hour strategy sessions are perfect for brainstorming and creating an action plan for your small business, find out more here.


L x

Laura, Creative Virtual Assistant at Kelp Collective

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